UPDATE: Monness Crespi Hardt Upgrades Monsanto to Buy on Higher Glyphosate Pricing
Monness Crespi Hardt raised its rating on Monsanto (NYSE: MON) from Neutral to Buy.
Monness Crespi Hardt said, "We are upgrading Monsanto from Neutral to Buy as continually increasing glyphosate prices are leading to greater EPS upside in 2013. Average retail glyphosate prices have reached $15/gallon (see chart below) and availability has become more limited. Average prices in 2012 were just $10.60, so the y-o-y increase is significant. We see MON benefiting from these higher prices, both in its branded Roundup products as well as in its generic glyphosate. We also see the seed business maintaining solid growth with help from higher crop prices, large corn acreage, and limited seed supply in 2013. We are raising our estimates to well above consensus and now see MON shares reaching $100."
Monsanto closed at $85.87 on Friday.
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